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Following the meltdown of the sub-prime lending market in recent times there are now big opportunities to invest in the foreclosure market. And this need not be done in a heartless way. There are plenty of ways to make money in this market while also helping people out of tough situations in which they find themselves.
There are various sources for locating your foreclosure properties including bank foreclosures and government foreclosures through departments such as HUD (Housing and Urban Development) and VA (Veterans’ Affairs). You can also advertize to help people facing foreclosure before the worst happens. This process of buying a property before it goes to foreclosure auctions is known as preforeclosure investing.
HUD foreclosures are a great option because they are often sold at rather attractive prices. Once the government pays out the lending institution for the loan that the tenant defaulted on, they get the property back, have it appraised and put it on the market at a fair market rate LESS an amount equivalent to any repairs that are needed. So if you are experienced at doing repairs cheaply it presents a strong opportunity.
HUD foreclosures can be found through the HUD website at http://www.hud.gov/homes/ where you will find links to a different site with a different system for each state. Once you find a HUD home in your state via those sites you can contact the HUD approved estate agent in order to view the property. The sale of HUD foreclosures is handled by such real estate offices and not by HUD themselves.
A sealed bidding process is the standard way in which HUD foreclosures are sold. There is a bidding period and at the end of that period all bids are opened and normally the highest bid is accepted. However, if the home has not sold during that period bids will continue to be received and are opened immediately. If the home remains unsold after 6 months it will be offered to nonprofits and government agencies with the intent of create housing for people in need.
The bidding on HUD homes is usually only open to potential owner-occupants during the initial bidding period. Real estate investors will be invited to make bids after that initial period if no bids have been received from people who wish to live in the home. However, there are still plenty of cases of investors buying HUD foreclosures at a deep discount. So with the current opportunites and sentiment of the average buyer it’s probably one avenue you want to check out.

Tags: hudforeclosures | hudforeclosures | governmentforeclosures | governmentforeclosures | foreclosureproperties | foreclosureproperties

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This entry was posted on Monday, November 26th, 2007 at 7:29 pm and is filed under Real estate investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.